Improved cash-flow for over 13,000 MSMEs, says U GRO Capital

The study cites 73 percent MSMEs showcased healthier average bank balances resulting in 13,000 plus estimated customers with improved cashflow situation. 80 percent MSMEs reported increased annual revenue by 5 to 20 percent, translating to 13,000 plus estimated customers having increased annual turnover.

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Photo by rupixen.com on Unsplash

Listed NBFC and MSME lender, U GRO Capital said it has improved cash-flow and annual turnover for over 13,000 MSMEs as per its impact assessment report.

The report was conducted with Sattva consulting, and recently released by Sivasubramanian Ramann, Chairman, Small Industries Development Bank of India (SIDBI).

The non-bank lender said, this study would be one of India’s first such vendor social diligence undertaken by any Company, in hopes to encourage the entire lending ecosystem to measure, evaluate, and govern the impact performance for their customers.

As per the study, over 450 MSME clientele of U GRO Capital were surveyed on the broad parameters of MSME Business and Operations, Employment Generation and Diversity, Credit taking ability and Entrepreneurial Confidence.

The study cites 73 percent MSMEs showcased healthier average bank balances resulting in 13,000 plus estimated customers with improved cashflow situation. 80 percent MSMEs reported increased annual revenue by 5 to 20 percent, translating to 13,000 plus estimated customers having increased annual turnover.

Around 17 percent MSMEs reported geographical expansion supporting 3,000 plus estimated customers with new branches or stores.
Further, 7 average additional permanent hires by MSMEs resulting in 1,16,000+ estimated additional employment generated.

Over 3.7 average additional female hires by MSMEs subsequently generating 64,000+ estimated additional female employment and 70 percent entrepreneurs reported in increased risk-taking appetite.

Shachindra Nath, Vice Chairman and Managing Director, said in a statement, “Impact has been at the forefront of all our business conduct. Our aim is not just to cater to the under-served segment but also enhance our impact at scale through a careful selection of channels and products. At U GRO Capital, we use a unique combination of intelligence & technology to understand each MSME’s potential for growth and their financial and non-financial needs, to create insightful loan products across 8 key sectors and 4 distribution channels.”

Nath added, “Today, we stand at more than INR 3,000 Cr in assets under management (AUM) and have disbursed over INR 5,600 Cr of loans till date. At one level, our business is often perceived as purely transactional, however when we delve a bit deeper, we realize how capital infusion, especially within the under-served sector, triggers a chain reaction of not just elevating business potential but also the entire social ecosystem. Being the catalysts to this, impact will continue to remain central to our mission at U GRO Capital.”